NEW YORK, July 30, 2026, 19:06 EDT —
- The initial after-hours price stood at $1,450, representing a 10.2% increase from the close on Thursday.
- Guidance for third-quarter revenue exceeded the consensus analyst estimate by 16.5%.
- Year-on-year revenue growth was driven 93.1% by Enterprise Data and Communications.
Monolithic Power was quoted at $1,450 at 6:58 p.m. EDT, rising 10.2% compared to Thursday’s closing price of $1,316.18. Regular U.S. trading had finished, but after-hours trading was still active.
The company projected its third-quarter revenue in the range of $1.14 billion to $1.16 billion. The midpoint of $1.15 billion indicates 17.3% growth from the previous quarter. This figure is 16.5% higher than a consensus estimate compiled before the report.
The growth composition sends a clearer signal to investors. Enterprise Data and Communications contributed $294.3 million of the $316.0 million rise in yearly sales, accounting for 93.1% of growth from 52.2% of total revenue.
| Q2 end market | Revenue | Year-on-year increase | Share of total increase |
|---|---|---|---|
| Enterprise Data | $380.6 million | $236.6 million | 74.9% |
| Communications | $131.5 million | $57.7 million | 18.3% |
| Four other markets | $468.5 million | $21.7 million | 6.9% |
| Total | $980.6 million | $316.0 million | 100.0% |
Based on data reported by the company. Totals may not add up precisely due to rounding.
The skew results in significant operating leverage. It further positions data-center and networking demand as the primary variable influencing estimates.
Revenue for the second quarter was $980.6 million, an increase of 47.6% compared to the same period last year. Adjusted earnings, or non-GAAP earnings per share, came in at $6.50. Both results surpassed analyst expectations, with each of the six end markets showing sequential growth.
| Q2 measure | Actual | Benchmark | Beat |
|---|---|---|---|
| Revenue compared to company forecast | $980.6 million | $900.0 million midpoint | 9.0% |
| Revenue versus analyst projection | $980.6 million | $903.3 million | 8.6% |
| Adjusted EPS | $6.50 | $5.88 | 10.5% |
| Adjusted operating profit | $367.7 million | $332.2 million | 10.7% |
The company’s previous guidance stood at $890 million to $910 million. StockStory’s aggregated estimates are used for analyst comparisons.
Chief Executive Michael Hsing stated the quarter demonstrated “the strength of our diversified model.” He additionally pointed to the company’s move toward full-service power solutions.
Enterprise Data revenue climbed 164.3% to $380.6 million, which management attributed to demand for AI and server power offerings. Communications revenue increased 78.3%, supported by growth in optical modules and switches.
Fresh product launches expand that opportunity, following early high-speed DDR5 memory orders. The company initiated sampling of high-voltage AC-to-DC solutions for 800-volt data-center infrastructure. Planned capacity now surpasses $6 billion by a substantial margin.
Profitability increased alongside sales, as the adjusted gross margin remained close to 55.6%. The adjusted operating margin climbed to 37.5%, a rise of 2.7 percentage points compared with a year ago.
| Measure | Q2 actual | Q3 midpoint | Sequential change |
|---|---|---|---|
| Revenue | $980.6 million | $1.150 billion | 17.3% |
| Adjusted gross margin | 55.6% | 55.7% | 0.1 point |
| Adjusted operating expenses | $177.6 million | $203.2 million | 14.4% |
| Adjusted operating margin | 37.5% | 38.0% | 0.5 point |
Initial estimate based on the midpoint of guidance, not on the company’s operating-margin outlook. Adjusted numbers remove stock-based compensation and specific other items.
Inventory increased by 9.1% from the prior quarter to $675.8 million, remaining behind the pace of revenue growth. Inventory days declined by 17 to 140. Cash and investments stood at $1.41 billion.
The board increased its repurchase authorization by $500 million, raising the total to $1 billion. This represents roughly 1.5% of the cash-close market capitalization. The market response is largely focused on the company’s operating prospects.
The stock was cash-close valued significantly higher than two other analog-chip peers.
| Company | Thursday close | Market value | Trailing P/E |
|---|---|---|---|
| Monolithic Power Systems, Inc. NASDAQ:MPWR | $1,316.18 | $64.8 billion | 94.2 times |
| Analog Devices, Inc. NASDAQ:ADI | $366.67 | $179.8 billion | 54.5 times |
| Texas Instruments Incorporated NASDAQ:TXN | $278.76 | $256.5 billion | 42.4 times |
Thursday’s regular-session prices were used for market data.
The early postmarket increase raises the trailing price-to-earnings ratio to almost 104. This intensifies the challenge of delivering results following the rally sparked by earnings.
The stock rose 1.7% last week and then dropped 1.3% by Thursday’s market close. After-hours trading indicated shares were 8.7% higher compared to last Friday.
Friday’s open will gauge the after-hours reaction. In the coming week, investors will monitor estimate changes relative to the third-quarter earnings consensus of $6.49 per share set before the report.
Risks stay elevated as just two segments are now responsible for the majority of incremental growth. Estimates may be affected by softer AI investment, optical demand, export restrictions or supply limitations. With a preliminary trailing multiple close to 104 times, there is limited tolerance for any disappointments.
